Real Estate Developers and Their Regulations: A Crucial Stage in the Housing Case

Real estate development today comes at a critical and sensitive stage regarding the housing issue in the State of Kuwait, amid rising housing demands and a large number of families waiting to obtain suitable housing. There is an urgent need to develop new mechanisms that contribute to accelerating the provision of housing and achieving a balance between citizens’ needs and the state’s capabilities and the private sector’s capacities.

The issue is no longer limited to merely providing land plots and residential lots; it now requires an integrated system that combines proper planning, financing, execution, quality assurance, and a diversity of housing options, all tailored to meet the needs of Kuwaiti families.

Law No. 118 of 2023... A Step to Involve the Private Sector

From this perspective, a series of legislations were introduced aimed at developing Kuwait’s housing system, the most prominent of which is Law No. 118 of 2023 concerning the establishment of companies to build and economically develop cities or residential areas. This law aims to directly involve the private sector in the housing system, granting it a significant role in developing residential projects through the establishment of specialized companies tasked with executing projects within clear legal frameworks.

This law represented a crucial step in addressing the housing issue by leveraging the technical, financial, and administrative capabilities of the private sector, and by distributing roles between government entities and development companies, thereby contributing to faster completion and improved project execution efficiency.

Real Estate Developers as Partners from Planning to Handover

The law followed studies aimed at developing the approach to executing housing projects and utilizing the expertise of real estate developers in planning, design, financing, execution, and project management.

A real estate developer is not merely an entity responsible for construction; rather, it is a partner in developing the project from its inception until handover, through preparing economic studies, selecting appropriate solutions, managing costs, monitoring execution, and adhering to technical specifications and delivery deadlines. If applied correctly, this system can contribute to a qualitative leap in the approach to providing housing care.

Decree-Law No. 89 of 2025... Greater Flexibility and Broader Options

While Law No. 118 of 2023 was important in establishing the legislative framework for private sector involvement in developing cities and residential areas, the need arose for greater flexibility in implementation and expanded options available to citizens, accommodating their differing needs, family sizes, and financial capacities.

Accordingly, Decree-Law No. 89 of 2025 was issued to amend certain provisions of the law, granting broader scope for applying the real estate development system, allowing for greater diversity in housing products, and facilitating project execution and accelerating housing production.

Lots, Ready Houses, Apartments, and Attached Villas Among Housing Options

Among the most significant aspects of the amendment was the expansion of housing options to include residential lots, ready-built houses, ready apartments, attached villas, mixed-use residential complexes, and gated residential complexes known as “compounds,” along with duplex units.

This diversity represents an important step in developing the concept of housing care, as the needs of Kuwaiti families are not uniform; a home suitable for a large family may not be appropriate for a small family in terms of space, cost, and nature of use.

Product Diversity Gives Citizens the Opportunity to Choose the Right Home

The importance of the amendment lies in providing citizens with the opportunity to choose a home that suits their family’s needs and budget, rather than restricting options to a single housing model.

Some individuals prefer housing vouchers to build a home tailored to their needs, while others seek ready-made houses that can be occupied in a shorter timeframe. Meanwhile, other families may find apartments, attached villas, or duplex units to be suitable options in terms of cost and space.

This shift makes real estate development more closely aligned with citizens’ actual needs and better equipped to offer diverse housing solutions.

Differences Between the Original Law and the Amendment

The difference between Law No. 118 of 2023 and Decree-Law No. 89 of 2025 lies in the fact that the original law established the legislative framework for involving the private sector in the creation and economic development of cities and residential areas. The amendment, on the other hand, provides greater flexibility in implementation, expands the range of housing options, and allows the application of the law’s provisions across various scopes and projects in accordance with approved regulations.

Consequently, development is no longer limited solely to the idea of creating large residential cities. It is now possible to apply the system to other projects and areas, provided the necessary conditions and studies are available.

Expanding the Scope of Utilizing Real Estate Developers’ Expertise

The amendment also provides the Public Authority for Housing Welfare with a broader scope to apply the law’s provisions in cities and residential or non-residential areas, or parts of cities developed by the Authority, or certain lands designated by its Board of Directors in accordance with regulatory provisions.

This approach can open the door to leveraging the expertise of real estate developers in developing existing projects or parts thereof, helping to diversify implementation methods rather than relying on a single model for housing projects.

Accelerating Housing Supply Requires Clear Responsibilities and Adherence to Timelines

The significance of these amendments extends beyond merely offering diverse housing options. It also lies in the potential to utilize them to accelerate housing provision, expand the beneficiary base, and achieve greater efficiency in utilizing available land and resources.

Sustainable Housing Solutions

Ultimately, Law No. 118 of 2023 and Decree-Law No. 89 of 2025 represent an important step in developing Kuwait’s housing system by expanding the role of the private sector, diversifying housing options, and granting greater flexibility in project implementation.

Researcher and Real Estate Consultant